The Associated Press March 3, 2010, 3:48AM ET

China stocks rebound on clean energy gains

China's stock market rebounded Wednesday on gains by clean energy suppliers, banks and oil companies ahead of this week's national legislature meeting but copper suppliers fell following sharp gains on Chile's earthquake.

The benchmark Shanghai Composite Index added 0.8 percent, or 23.9 points, to 3,097. The Shenzhen Composite Index for China's smaller second exchange added 0.9 percent, or 10.1 points, to 1,194.11.

Investor concerns about the global economy that have weighed on the market in recent weeks are easing, said Qin Xiaobin, chief strategist for Galaxy Securities.

"Investor expectations for economic growth and company profit growth are reviving. The risk of a fall in the market is not big," Qin said.

Clean energy suppliers gained amid government efforts to promote renewable power sources with tax breaks and subsidies. Shenzhen Topraysolar Co., a maker of solar cells, gained 4.6 percent to 26.15 yuan, while wind turbine producer Dongfang Electric Corp. rose 4.8 percent to 45.43 yuan.

Delegates to the National People's Congress this week have made proposals to promote the industry, "so the shares in the field have become hot," Qin said.

Copper suppliers fell after surging this week on expectations an earthquake that devastated Chile's second-biggest city would disrupt supplies and push up prices. Jiangxi Copper Ltd. declined 0.2 percent to 36.67 yuan, while Yunnan Copper Ltd. was down 0.9 percent at 26.47 yuan.

PetroChina Ltd., Asia's biggest oil and gas producer, gained 0.3 percent to 12.99 yuan while rival Sinopec, or China Petroleum & Chemical Co., added 0.4 percent to 11.32 yuan.

The country's biggest commercial lender, Industrial & Commercial Bank of China Ltd., rose 0.4 percent to 4.93 yuan. Bank of China Ltd. gained 0.5 percent to 4.18 yuan.

Developer Poly Real Estate Ltd. fell 0.9 percent to 19.66 yuan while Ping An Insurance Co. of China lost 0.34 percent to 46.42 yuan.

In currency markets, China's yuan rose to 6.8262 to the U.S. dollar, up from Tuesday's 6.8272.


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